What is the purpose of money back purchases?

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The whole money back thing makes absolutely no sense. If you are going to sell something for $500, then say you will give $100 back after purchase, why not just make the product $400? Is it some sort of sleezy marketing scheme? ELI5. Please! Make this make sense.

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Anonymous 0 Comments

It is bait that not everyone takes. Markups on most products are usually around 500%, sometimes as high as 1,000%. A little cashback which people rarely claim is a small price for any measurable increase in sales volume

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